Silver bullion and Gresham's Law going East

Silver is not going away. Its ongoing popularity seems to fly in the face of the modernist, the Keynesian and the visionary who dreams of a world without physical currency or money at all. Despite their viewpoints, silver and other precious metals remain sought after and valued by many investors.

Humans in developed countries often seem obsessed with technology and modernity, but they still sit in chairs, read with their eyes, and repeat the same behaviors over and over again.

To the conventionally informed, silver and gold may seem a barbaric, outdated and bulky form of currency. To the elite, these metals are relics to be hated and suppressed because they represent that which threatens their livelihood.

Precious Metals Have Retained Their Value but Remain Under-owned

Yet the precious metals are still around and have retained their value. They are not tulips nor a dot com stock that might be prone to bubbles, largely because their unique properties give them intrinsic value that makes them universally desirable.

Precious metals like silver and gold are widely recognized, liquid and easy to trade. Their fundamental value means they need to pay no interest or dividend as a bribe for investor ownership.

Yet these metals remain under-owned at the very time where the actual ownership of an asset that cannot be created at will is in severely short supply.

A government can outlaw or tax them, and a media complex can build propaganda campaigns against them. Nevertheless, in the end, this attention has the same effect as prohibiting gun ownership in a culture whose constitution and identity is built upon that very principle.

Time and time again, the world has seen threats of confiscation simply accelerate hoarding.

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